This Morning: Ballmer Speaks, AAPL Support at $520

By Tiernan Ray

Here are some things going on this morning in your world of tech:

Shares of wireless chip maker Qualcomm (QCOM) are up 7 cents at $61.80 in advance of the company’s analyst day presentation in San Diego, which will commence at 12 pm, Eastern time. You can catch the webcast of it here.

Shares of NetApp (NTAP) continue the gains they enjoyed in the after-market yesterday, rising $2.77, or over 10%, to $29.89 after the company beat fiscal Q1 EPS expectations and forecast this quarter’s results above consensus.

The stock got at least one upgrade today, from Raymond James’s Brian Alexander, who raised his rating to Outperform from Market Perform, writing “We have increased optimism that product refreshes, tighter integration of flash, and expanding partnerships with leading technology players should improve revenue momentum. We also anticipate gross margin expansion beginning in the Jan. quarter.”

Shares of retailer Gamestop (GME) are up 7 cents at $23.56 after the company this morning missedfiscal Q3 revenue estimates but beat on the bottom line by 5 cents a share. The company forecast this quarter’s profit per share roughly in line with expectations.

Shares of Texas Instruments (TXN) are up 9 cents at $28.85, after the company last night said it would cut 1,700 jobs as it downsizes its “OMAP” processor business. The business will now be focused on embedded chip applications, as TI is following its original intention to get out of the wireless business. The move is expected to save the company $450 million annually.

In a note to clients today, Williams Financial Group’s Cody Acree, who has a Buy rating on TI shares, writes that he’s pleased with the move, although he thinks TI really wanted to sell the thing, writing “the largest question we have is if this restructuring takes any sell of this business completely off the table?” TI could still sell the unit at some point, he concludes.

Apple (AAPL) shares are down $4.78, or 0.9%, at $532.10 even as another positive missive surfaced today. Credit Suisse’s Kulbinder Garcha reiterates an Outperform rating on the shares and a $750 price target, writing that based on an historical trough multiple of 10 times forward earnings, there is support for the stock at $520, with “near-term upside” perhaps “capped” at $630.

In case you missed it, Nokia‘s (NOK) decline in smartphone standing, to seventh place in Q3 from third place a year earlier, which was reported yesterday, this morning was splashed across the front of the “Marketplace” section of The Wall Street Journal today, in a piece by Gustav Sandstrom and Sven Grundberg.

Nokia shares are up 2 cents at $2.69.

Also in case you missed it, Bloomberg‘s Aaron Ricadelathis morning reports on the talk yesterday by Microsoft (MSFT) CEO Steve Ballmer at the Churchill Club gathering in Santa Clara, during which Ballmer told the assembled Microsoft needs to focus more on the union of hardware and software. My friend Eric Savitzhas more on the event over at The Tech Trade at Forbes.

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There are 14 comments

NOVEMBER 15, 2012 10:24 A.M.

Craig wrote:

Bought at $532. This is awesome!

NOVEMBER 15, 2012 10:25 A.M.

Wet Paint wrote:

And Apple continues to drop, support will become resistance soon. There is nothing good happening for Apple in 2013 with boring products and a weak OS system. analysts help you part with your money, they are very good at that.

NOVEMBER 15, 2012 10:27 A.M.

Wet Paint wrote:

Craig - do you plan to average down today???

NOVEMBER 15, 2012 10:27 A.M.

Ed wrote:

Another "positive" message from another a-hole analyst! face it, Apple stock, Tim Cook, and Apple's Leadership all SUX! 710 to 532 and all you Apple wanna be's will defend them. Please kids, the company is broken. Move on to another company and Barron's: write about something else. Apple is past tense.

NOVEMBER 15, 2012 10:41 A.M.

@wet wrote:

Yes, dollar-cost averaging, simple math, never look a gift horse in the mouth. Talk to you in Feb. Cheers!

NOVEMBER 15, 2012 10:43 A.M.

@Ed wrote:

You confirm my thesis that Buying Apple at these levels will be a great investment, thx!

NOVEMBER 15, 2012 10:48 A.M.

Wet Paint wrote:

Craigers!!!

Are you buying now?? It's been almost an hour since you thought you got a good deal. Time to load up AGAIN.

NOVEMBER 15, 2012 10:58 A.M.

@wetters wrote:

I knew you would respond, how'd you know people call me Craigers! <;). My next buy is at $501, and I truly hope it gets there! I have made huge return buying into aapl corrections. Come back in Feb., good luck with your aapl short! May best -ers win... Cheers!

NOVEMBER 15, 2012 11:00 A.M.

Greg wrote:

Ed,
It seems that YOU need to move to another company.

NOVEMBER 15, 2012 11:05 A.M.

Wet Paint wrote:

Craigers!!!

I call all my Craig buds - "Craigers" or "Cracked" but that's reserved for thos who buy Apple!

Good luck with that trade, Apple has their problems these days. They will die on iOS , Steve Jobs blew it when he failed to develop the next generation of OS's, Tim Cook will be crying for years over that huge flop by Jobs.

NOVEMBER 15, 2012 11:31 A.M.

freddysrevng wrote:

AAPL has too many good competitors, at this point. I know a half dozen people ready to "upgrade" to new BB 10 phones immediately upon launch in February 2013. If you are curious, as to, what will be the "iPhone 5 and Samsung Galaxy S3 KILLER" - go Google specs on the BlackBerry Aristo.

AAPL has become a company that "sues and cannibalizes" rather than "innovates".... The stock will soon be $200 off its high of $705, Cookie has been a disaster and people who have, actually, bought iPhone 5's as an "upgrade" from iPhone 4 and 4s's are noticeably "underwhelmed".

With the addition of BB 10 to the mix - iOS will "Officially" be the "oldest and most boring OS in mobile".

I own both AAPL and RIMM stock - which one have I made more money with over the past 3 months?

I understand how difficult it is for our Fanboy Friends to break the emotional bond they have with this once amazing company under Steve Jobs - but guess what - BlackBerry Fans went through the exact same thing a few years ago.

Enter BB 10..

NOVEMBER 15, 2012 11:57 A.M.

@ freddysrvng wrote:

You don't really know what an OS is dude. It's below the surface moron. How can you be board with code idiot? Even QNX is older than OSX. Sheesh you're so stupid sometimes. And always with the broken record. And by the way. You do not own Apple or RIM. You talk like a hick. And you only trol and spam Apple. You are never around when RIM is up etc. Hmm. So listen you little creep. I hope you get cholera.

Since Apple's cult leader Steve Jobs left the scene, Tim Cook had the benefit of living off the momentum of his predecessor. Now that that momentum is waning, Tim Cook needs to carry Apple with a new wave of excitment and innovation for its customer base. If this is not forthcoming, Apple will continue to decline under the pressure of its more innovative and hungry competitors. The more disconcerting signs are the strategic blunders in the release of half-baked products that tarnished the Apple's reputation, its obessions with legal battle to block competition instead of running faster on innovation and the disregard for its loyal customers by not giving them a choice and a good user experience. These are fundamental flaws that in combination are real issues for concern about Apple key management.

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.